SENATE BILL REPORT

                                    SB 6416

          AS REPORTED BY COMMITTEE ON AGRICULTURE & WATER RESOURCES,

                               FEBRUARY 7, 1992

Brief Description:  Regulating producer liens for agricultural products.

SPONSORS: Senators Barr, Newhouse and Gaspard

SENATE COMMITTEE ON AGRICULTURE & WATER RESOURCES

Majority Report:  That Substitute Senate Bill No. 6416 be substituted therefor, and the substitute bill do pass. 

      Signed by Senators Barr, Chairman; Anderson, Vice Chairman; Bailey, Gaspard, Hansen, and Newhouse.

Staff:  Ben Barnes (786‑7465)

Hearing Dates:  February 7, 1992

BACKGROUND:

Statutory agricultural liens currently exist for crops and for processors and preparers.

SUMMARY:

A first priority statutory lien in favor of producers who deliver crops to a "handler" is created.  A "handler" is anyone who accepts delivery of and agrees to sell agricultural products on a consignment basis.  The lien attaches to the agricultural products and to the account receivables for such products.

EFFECT OF PROPOSED SUBSTITUTE:

A consignment of agricultural products by a producer to a handler does not vest title or right to the products in the handler; it only confers the right to sell the products on the producer's behalf.  Any disposition of agricultural products consigned to a handler without the producer's consent is automatically void.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

Producers who deliver their crops on consignment to fruit packers need statutory clarification that such consignment does not transfer ownership of the crops to the packer and thereby subject the crops and/or proceeds to the claims of the packer's creditors.

TESTIMONY AGAINST:  None

TESTIFIED:  Darrell O. Turner, WA State Farm Bureau; Dan Coyne, WA State Council of Farmer Cooperatives; Trevor Sandison, WA Bankers Assn.